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Abu Dhabi Real Estate Sees 125% Surge In FDI, Transactions Hit $26.19 Billion In 2024

by THEFUTURE.TEAM

The Abu Dhabi Real Estate Center (ADREC) has reported an impressive 125% year-on-year increase in foreign direct investment (FDI) in 2024, with the sector attracting over AED7.86 billion ($2.14 billion). A total of 2,302 investors from 105 countries, including the US, UK, Kazakhstan, Russia, France, and China, contributed to this surge.

Engineer Rashed Al Omaira, acting director general of ADREC, highlighted the significance of this surge, stating, “The rise in FDI demonstrates Abu Dhabi’s resilience and adaptability in a changing global economy. It underscores the emirate’s investment-friendly environment and world-class infrastructure that ensures sustainable growth.”

Real Estate Transactions Grow 24.2% In 2024

Abu Dhabi’s real estate sector saw a remarkable 24.2% rise in transactions last year. The market continues to thrive, positioning itself as an attractive destination for global investors. ADREC revealed that 28,249 transactions were completed in 2024, a 10.45% increase in total value, reaching AED96.2 billion ($26.19 billion). The sector included 16,735 sales transactions worth AED58.5 billion and 11,514 mortgage transactions valued at AED37.7 billion.

“The continuous growth of the real estate market reflects our strategy of ensuring stability,” said Al Omaira. “Abu Dhabi’s recognition among the top five global improvers in the 2024 Global Real Estate Transparency Index (GRETI) by JLL reflects our commitment to transparency and trust in the sector.”

38 New Projects Launched In 2024

In line with its growth strategy, Abu Dhabi introduced 38 new real estate projects for off-plan sales and completed 12 major developments in 2024. These projects were carefully selected for their diverse offerings, innovative designs, and affordability, catering to a broad range of investors.

ADREC remains committed to enhancing Abu Dhabi’s position as a global investment hub, with initiatives focused on driving sustainable development and improving the quality of life for residents.

High ROI Areas In Abu Dhabi’s Real Estate

Several areas in Abu Dhabi’s real estate market stood out in 2024 for offering strong returns on investment (ROI), according to Bayut’s Abu Dhabi Annual Property Market Reports.

  • Al Reef provided the highest average ROI for budget-friendly apartments at 8.64%.
  • Al Ghadeer followed closely, with an 8.41% ROI for affordable apartments.
  • Yas Island was the top choice for luxury apartments, offering a 7.07% ROI.
  • Al Raha Beach also proved popular for high-end apartments with a 6.09% ROI.
  • For budget-friendly villas, Hydra Village led with an 8.09% ROI.
  • Al Ghadeer again offered a solid return of 6.53% in the affordable villa category.
  • Yas Island emerged as the top destination for luxury villas, with an ROI of 6.28%, closely followed by Al Raha Gardens with a 6.23% ROI.

Popular Off-Plan Projects In 2024

Abu Dhabi’s off-plan real estate market continued to attract investors in both affordable and luxury segments.

  • Affordable Apartments: Top choices included the City of Lights on Al Reem Island, Al Reeman 1 in Al Shamkha, and the eco-friendly Royal Park in Masdar City.
  • Luxury Apartments: Yas Bay on Yas Island, Saadiyat Island’s Cultural District, and Al Maryah Vista on Al Maryah Island stood out for their luxury offerings.
  • Affordable Villas: Investors showed interest in Reem Hills on Al Reem Island, Bloom Living in Zayed City, and Al Reeman 2 in Al Shamkha.
  • Luxury Villas: The opulent Saadiyat Lagoons on Saadiyat Island and Yas Acres on Yas Island were the top picks for those seeking high-end villa options.

Abu Dhabi’s real estate market continues to thrive, offering numerous opportunities for investors across diverse segments. ADREC’s initiatives are designed to ensure long-term growth and sustainability for the sector.

Shein Targets $25 Billion Valuation In Hong Kong IPO As Growth Slows

by News Editor

Shein is reportedly targeting a valuation of around $25 billion in its planned Hong Kong IPO, a sharp decline from the nearly $100 billion valuation the online fashion retailer achieved in a 2022 fundraising round.

Two people familiar with the plans said the company was likely to target about $25 billion, while another source put the expected range at $25 billion to $28 billion based on the proposed price band.

IPO Valuation Falls Sharply

Shein plans to sell up to 8% of its shares in the offering, according to a person familiar with the plans. At a $25 billion valuation, that would translate into an IPO of as much as $2 billion.

The latest target is also below the $30 billion to $40 billion valuation the company was seeking earlier this month as it began meeting with potential investors.

Founded in China in 2012 and now headquartered in Singapore, Shein sells low-cost clothing to consumers in about 160 countries. The company is expected to launch its long-awaited Hong Kong IPO later this week.

Trade Restrictions Weigh On Growth

Shein’s valuation has come under pressure as major markets tighten rules affecting low-cost e-commerce shipments. The European Union, for example, has moved to impose additional fees on cheap parcels from platforms such as Shein and Temu. EU Tightens Rules On Low-Cost E-Commerce Parcels

In the U.S., the removal of an import duty exemption for small packages has also affected the company. Shein reported a $99 million quarterly loss in the first quarter of 2026 as sales growth slowed, while a one-time accounting charge further weighed on its results. Shein Reports First-Quarter Loss Ahead Of IPO

Investors Question Shein’s Growth Prospects

The steep reduction in valuation reflects growing concerns over slower growth, higher trade costs, regulatory pressure and stronger competition across global e-commerce.

Some investors who reviewed Shein’s recent financial statements or attended IPO presentations told Reuters they were skeptical that the company could return to the growth rates that supported its $98.2 billion valuation in 2022. Shein’s Slowing Growth Tests Investor Appetite

A lower IPO valuation could also affect Shein’s existing investors. Under the terms of its IPO filing, the company may have to issue additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.

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